FCIK seeks Rs 2,000 Cr lifeline for J&K MSMEs, flags deepening industrial crisis
Srinagar, Jul 25: In a significant policy appeal to revive Jammu and Kashmir’s ailing Micro, Small and Medium Enterprises (MSME) sector, the Federation of Chambers of Industries Kashmir (FCIK) has urged the Union Ministry of MSME to intervene decisively for the revival of sick industrial units, equitable distribution of policy incentives, and overdue modernization of the region’s industrial base.
During an interactive meeting held in Srinagar, FCIK Head Shahid Kamili submitted a detailed memorandum to Union MSME Secretary Subash Chandra Lal Das, outlining urgent measures needed to address the deepening crisis in the region’s industrial ecosystem.
According to a statement, Kamili emphasised that "more than 90 percent of the 40,000 industrial units in J&K are either sick or operating below capacity due to over three decades of sociopolitical issues, natural disasters, and repeated lockdowns, amounting to an estimated 3,000 days of lost operations. Despite repeated representations, no structured revival mechanism has been put in place to address these long-standing issues."
In its memorandum, FCIK called for the immediate creation of a 2,000 crore revival fund to rejuvenate sick units, support technological upgrades, and facilitate modernisation and diversification. The initiative, it stated, could unlock over 1 lakh crore of stalled investments and generate large-scale employment across the region.
FCIK also urged a revised procurement policy favouring local units. It proposed reviving SICOP’s procurement role, starting with 358 reserved items for MSEs and 25 percent allocation of public contracts to local MSMEs, and establishing a transparent mechanism for ensuring fair pricing and equitable distribution. The federation also called for a local vendor filter on the Government e-Marketplace (GeM) for contracts up to 2 crore, citing adverse impacts of post-2019 procurement reforms on local manufacturers.
Addressing regional disparities in the New Central Sector Scheme (NCSS), FCIK demanded equitable access to incentives across all 20 districts, regardless of pre-registration status. It also advocated the inclusion of existing units seeking revival, which have been left out under current provisions favouring new investments.
Highlighting financial stress among industrial units, FCIK raised concerns about high interest rates and coercive recovery practices by banks. It proposed the formation of a tripartite committee with government, banks, and industry representatives, along with a special one-time settlement scheme. FCIK demanded the creation of an Asset Reconstruction Company with a corpus of 1000 Crores to deal with NPA and stressed accounts. The federation also sought the revival of the J&K State Financial Corporation, which was promised ₹150 crore under the Prime Minister’s Task Force and Dr C Rangarajan Committee but is yet to receive the allocation.
FCIK further urged the Ministry to prioritise the development of industrial estates in remote districts under central schemes. Its proposals included plug-and-play infrastructure, rooftop solar energy, effluent treatment facilities, and integration with the PM Gati Shakti initiative to boost connectivity and logistics.
Calling for institutional reforms, FCIK stressed improved coordination within the Industries & Commerce Department and a stronger interface with the MSME Ministry. It also advocated restoring autonomy to District Industries Centres (DICs) for processing routine matters like business structure changes, partner/ director amendments, and activity modifications with minimal physical interface.
“Jammu and Kashmir’s industrial base stands at a historic turning point. With the right policy support, we can transform it into a powerful engine for inclusive and sustainable economic growth,” Kamili said.
Union Secretary SCL Das acknowledged the issues raised and assured the FCIK delegation that the Ministry would examine the proposals with urgency and empathy.
